RSS feedsGibraltar has long been a bit of a joke in the UK: a place where squaddies eat beans on toast by the Mediterranean. But its critics probably haven’t visited recently. On the back of low tax rates and the growth of international finance centres, the Rock has become a City away from the City, a Square Mile-sur-mer.
Boasting a gross domestic product of £740m for a population of just 28,000, and being home to FTSE giant PartyGaming, the peninsula’s military past has been firmly left behind. 'I cannot complain about the lifestyle I have', says Philippa Harvey, originally from the Wirral and now working for Baker Tilly in Gibraltar.’The sun brightens up the working days.
During winter my working hours are 9am to 5.30pm. However, there are times over the busy period when I work later than this. In the months of July and August, I have ‘summer hours’of 8.30am to 3.30pm.
‘Most of my time is spent outdoors and evenings can be spent eating al fresco. Gibraltar is a close-knit and safe community where everybody seems to know each other.’
Gibraltar itself is not big, covering two-and-a-quarter square miles. ‘Gibraltar can get a little claustrophobic due to the lack of space,’ says Harvey.
But since the border with Spain was opened after the death of General Franco, there have been more opportunities for Gibraltarians to cross into Spain to relax, play golf and even polo.
The business of Gibraltar is framed primarily around its tax rules. It currently has a corporation tax rate of 27%, but the plan is to reduce that to between 10% and 12%, making it attractive for mobile businesses. PartyGaming is one of a number of online gaming businesses based there, but the area is also strong on other ‘offshore’ businesses, like fund administration and insurance work for FTSE 100 multi nationals.
Harvey, an ACCA-trained audit senior, works mostly on small family owned businesses, funds and insurance brokers.
Though she hasn’t worked as an auditor in the UK, she says there is one key difference in what she does over there that she wouldn’t do here. ‘If I moved back to UK I would be spending a couple of hours a day traveling to work. Here, I am a half-an-hour walk away and can go to the beach straight after work.’
Gibraltar also has some attractions from a personal tax point of view. Income tax rates are slightly lower than in the UK, but, perhaps more importantly, there are no taxes on unearned income. So any capital gains or death duties go out the window, as they do in a host of other areas.
The Rock hasn’t sacrificed all remnants of its military past. The Ministry of Defence still occupies a chunk of land, though less than it did. The presence of the UK is felt more in the historical buildings, the city walls and the network of tunnels through the Rock designed to deter foreign invaders.
It is also a cultural melting pot. For centuries a home for international traders, the Genoese in particular, Gibraltar is now home to international financiers of every creed and colour, from Russian oligarchs to lawyers and accountants from all over the globe.
Harvey has some advice for anyone thinking of joining that throng. ‘Be sure it is the right decision for you. There may be many times that you are homesick and want your family around. It can be a difficult decision, but it is a worthwhile experience. Also, don’t think that it will be like a holiday - although the lifestyle of beaches and sun is fantastic, you still have to work hard.’
Gibraltar facts
- Size: 2.25 sq miles
- Population: 28,000
- GDP: £740m
- Corporate tax rate: 27%
- Income tax rates:
20% on first £25,000
30% on next £75,000
40% above £100,000
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